Money Laundering

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Related to Money Laundering: Anti Money Laundering

Money Laundering

Disguising the source of money generated through illegal activities so that it resembles legitimate income. Money laundering involves breaking up large amounts of cash into smaller transactions, changing its form through investments or deposits into bank accounts, and moving the money through seemingly legitimate businesses to bring it into mainstream economy.

Money Laundering

An illegal act in which one makes illegally obtained money appear to be legally obtained. For instance, one may route money obtained in drug trafficking through a shell company to give it the veneer of legitimacy. One formerly common example is the practice of exchanging illegally obtained money for coins and placing them into a soda machine. One then deposits money from the soda machine such that it looks like the money came from the purchase of sodas rather than from its real source.

money laundering

the conversion of money (often obtained illegally through crime) into foreign currencies through multi-bank deposits to hide their source of origin, through bureaux de changes and through investments in ‘legitimate’ businesses.

In 2000 the OECD backed an initiative (made the more urgent by the terrorist attacks on the USA) for countries (in particular, TAX HAVENS) to require greater disclosure and scrutiny of ‘suspect’ bank accounts.

References in periodicals archive ?
Customs Intelligence authorities took the plea that model Ayyan Ali was not involved in ordinary currency smuggling case but it was case of money laundering and major gangs were involved therein.
A major money laundering country is defined by statute as one "whose financial institutions engage in currency transactions involving significant amounts of proceeds from international narcotics trafficking" (FAA [section] 481(e)(7)).
The AML Survey indicates that 92 per cent of respondents considered money laundering high risk area," said Kauzal Ali Rizvi, director Consulting, KPMG Lower Gulf.
He recalled that in the past as well as recently Cyprus was evaluated as regards money laundering activities, adding that in November 2011, the Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) drafted an assessment report giving Cyprus a good evaluation as regards major anti-money laundering and counter-terrorist financing measures.
The Central Bank requires that such institutions inform the Central Bank of any transactions carried out by customers, which they suspect may be related to illegal dealings, and may consequently be related to money laundering and/or terrorism financing.
They also recommended that a mechanism of data exchange be strengthened on crimes related to money laundering and terror financing through the implementation of international conventions and treaties effectively.
Henwood's assertions were backed up by Tim Moore, chief executive of Administration of Gambling on Tracks Ltd, the body responsible for the administration of racecourse bookmakers and the conduct of on-course betting, who said that the betting ring is regarded as a poor area to attempt money laundering.
In November 2009, the Estonian parliament adopted an 'Act Amending the Money Laundering and Terrorist Financing Prevention Act and Other Related Acts'.
Money laundering is the process by which the proceeds of crime are changed so that they appear to come from a legitimate source.
Abu Baker Murshed Al-Zuhairi, professor of public law in the Faculty of Law at Sana'a University, discussed the hazards of money laundering on the national economy.
According to International Monetary Fund the estimated money laundering flow exceeded one trillion dollars every year.
I say "stood" because, by the time you read this, the Money Laundering Regulations 2007, which enact the third EU money-laundering directive into UK law, will almost be upon us.